Binance Coin (BNB) is approaching a critical price point that could influence its future direction. This comes after two consecutive days of price increases. As of September 1, BNB was dangerously close to dipping below $500.Â
In August of this year, BNB’s price formed an ascending channel on the daily chart, allowing the digital currency to climb from $464 to $600. Nevertheless, a subsequent 15 % decline posed a risk to this trend, with signals hinting at a possible recurrence of the price plunge observed on August 5th.
Binance Coin’s ascent stalls as bulls attempt to overcome key resistance
The bulls successfully stopped the drop in value, helping Binance Coin rise to $536.40. As the price approaches the supply zone between $550 and $560, where sellers tend to outnumber buyers, surpassing this point might be challenging.Â
In the past, entering this territory has typically led to a decrease in prices unless there is a spike in demand. It seems challenging for BNB to break through this resistance because the current level of buying interest may not be strong enough to drive prices up.Â
Technical indicators suggest that BNB is approaching key resistance with caution
According to the BNB chart analysis using the Moving Average Convergence Divergence (MACD), the current market sentiment suggests a sense of wariness. The downward trend in MACD’s reading indicates that the recent surge in BNB’s value might not last long; thus, surpassing $550 could pose a hurdle that may not be overcome.
Historically, when Binance Coin fails to break above $560, the price drops below $520 and sometimes even below $500. If this pattern holds, a climb toward $600 may not be likely in the short term. The $546.30 level is also a critical point of interest, where bears may attempt to lower the price.
If BNB fails to break through this resistance, the price could drop to $500 for the first time in almost a month. On the other hand, if the broader market recovery continues, BNB could potentially surpass the overhead resistance and aim for $589.80.
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